Facts

Surfrider Foundation filed a citizen enforcement lawsuit under the California Coastal Act against Martins Beach 1 LLC and Martins Beach 2 LLC. In June 2008, the defendants purchased a certain private beach property for $32.5 million. At the time of the purchase of the property there was a gate that was kept unlocked during the day. The prior owner of the property allowed the public to park on the property and gain access to the beach upon payment of a parking fee. After purchasing the property the defendants continued to allow the public access to the beach upon payment of a parking fee, until sometime in 2010 when the gate was closed and locked.

PLAINTIFF'S CONTENTIONS:
Plaintiff argued that defendants performed an unpermitted development of their property by closing the gate and blocking public access to the beach.

DEFENDANTS' CONTENTIONS:
Defendants argued that they had a constitutional right to block the public from their private property. Defendants further argued that there was no development of their property just by decreasing access to the property and they were not required to apply for a Coastal Development Permit.

Result

After a bench trial, the court found that no physical change was required to show a "development" requiring the need for a coastal development permit. The court further found that defendants engaged in unpermitted development. The court ordered defendants to cease preventing the public from accessing and using the beach at their property until a determination on a CDP application was reached. The court also found that defendant's conduct of closing and locking the gate, changing messages on a billboard on the property, and hiring security guards to deter pubic access violated the California Coastal Act. The court, however, found defendants' conduct was in good faith and declined to impose any penalties.